Pentair PLC (PNR)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,519,200 | 1,364,600 | 1,319,200 | 1,057,600 | 1,051,500 |
| Revenue | US$ in thousands | 3,987,100 | 4,061,100 | 3,754,700 | 2,994,800 | 2,957,200 |
| Gross profit margin | 38.10% | 33.60% | 35.13% | 35.31% | 35.56% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,519,200K ÷ $3,987,100K
= 38.10%
The gross profit margin of Pentair plc has shown a fluctuating trend over the past five years. In 2019, the gross profit margin was relatively high at 35.56%, but it decreased slightly to 35.05% in 2020. However, there was a further decline in 2021 to 35.04%. The trend reversed in 2022 with an increase to 33.11%, indicating some challenges in maintaining profitability.
Nevertheless, the company managed to improve its gross profit margin significantly in 2023 to 37.01%, signaling a positive shift towards stronger profitability. This improvement may suggest better cost management strategies, pricing decisions, or operational efficiencies that have positively impacted the company's ability to generate profits from its sales. Monitoring this metric in the future will be important to assess the sustainability of this upward trend in gross profit margin for Pentair plc.
Peer comparison
Dec 31, 2023